The vacation rental property management space is a part of the broader hospitality industry, which includes various professions and roles, such as cleaning staff, concierge, maintenance vendors, suppliers, and event planners. These teams work together to generate business, increase sales, and generate revenue. However, this industry has its own language and terminologies that may be unfamiliar to those outside of the sector. It is crucial for individuals working in this industry to be familiar with these terminologies to effectively conduct successful business operations.
Now, let us look at some valuable information related to the vacation rental property management industry and discuss some of the essential terms commonly used. A short-term rental, also known as a vacation rental, is a housing or sleeping establishment that leases out furnished properties on a short-term basis, often charged based on the number of nights guests spend at the property. These rental properties can vary from single-family homes or duplex units to multiple-family units. Some individuals choose to manage their vacation rental properties themselves, acting as the owners and property managers. Others opt to hire professional property managers who handle the operations and management of the rental properties on behalf of the owners. It is essential for rental property owners to focus on the design and attractiveness of their properties to attract potential guests. Decorating the space with necessary supplies, ensuring comfort and durability of the furnishings, and maintaining good reviews are crucial in attracting guests. High-quality images and accurate descriptions are also essential in marketing the rental property effectively. Additionally, understanding key performance metrics such as occupancy rate, average daily
Common Terminologies used in Short term rental Industry
The vacation rental property management industry has its own set of terminologies. Here is a list of 30 terminologies used in the vacation rental property management space and their definitions:
1. Short-Term Rental (STR): A housing or sleeping establishment that leases out furnished properties on a short-term basis, usually charged on a daily or weekly basis.
2. Occupancy: The rate at which rooms are occupied in a hotel or rental property.
3. Average Daily Rate (ADR) or Average Room Rate (ARR): The average rental rate per room or unit per day.
4. Check-In: The process where guests register their booking at a hotel or rental property and receive their keycards.
5. Check-Out: The process where guests pay their bills and leave the hotel or rental property.
6. F&B: An acronym for Food and Beverage, referring to the dining and refreshment services provided in a hotel or rental property.
7. Guest Services (GS): The department responsible for providing assistance and services to guests.
8. Guest Services Manager (GSM): The person in charge of overseeing the guest services department.
9. Vacation Home Rental: A single-family home or duplex unit that is rented out in its entirety to visitors.
10. Vacation Rental: A multiple-family unit that is rented out in its entirety to visitors.
11. Bed & Breakfast: A single-family home with the owner/operator living on-site, offering 2 or more guestrooms for rent.
12. Gross Revenue: The total sum of money generated by a business without considering expenses or discounts.
13. Net Revenue: The revenue remaining after subtracting discounts or expenses from gross revenue.
14. Extranet: The back-end of a rental sales website where users can log in and enter rates, availability, and restrictions.
15. ROI: Acronym for Return on Investment, a measure of the profitability of an investment.
16. Rental Owner: The individual or entity that owns the vacation rental property.
17. Property Manager: A professional hired to manage and oversee the operations of a vacation rental property on behalf of the owner.
18. Commission: A fee paid to a property manager for every booking made on their managed properties.
19. Maintenance Vendor: A third-party provider responsible for performing maintenance and repairs on the vacation rental property.
20. Housekeeping: The department or service responsible for cleaning and maintaining the cleanliness of the vacation rental property.
21. Supplier: A company or individual that provides goods or services to the vacation rental property, such as toiletries or linens.
22. Event Planner: A professional responsible for organizing events and activities for guests staying at the vacation rental property.
23. Inventory: A list of items and supplies available at the vacation rental property, including furniture, appliances, and amenities.
24. Booking: The process of reserving and confirming a stay at the vacation rental property.
25. Cancellation Policy: The set of rules and conditions regarding cancellations and refunds for bookings at the vacation rental property.
26. Occupancy Rate: The percentage of time that a vacation rental property is occupied by guests.
27. Marketing: The activities and strategies used to promote and advertise the vacation rental property to attract potential guests.
28. Listing: An advertisement or online profile of the vacation rental property on platforms such as Airbnb or HomeAway.
29. Reviews: Feedback and ratings provided by previous guests about their experience staying at the vacation rental property.
30. Amenities: The features and facilities provided at the vacation rental property, such as a swimming pool, Wi-Fi, or parking.
